Video: West Red Lake Gold works to restart Madsen mine
The company is optimistic about the potential of its Red Lake assets in the storied gold district of northern Ontario.
Gold Settles $7.90 Lower …Ending The Week At…($1384.90)
The precious metals tumbled early after reports that The Central Bank of China did indeed raise the banks’ reserve requirement by .50 basis points effective December 20th … Most analysts predicted this hike was coming as the basket of commodities in China remains at historic highs….
This rate hike was installed to help slow the countries inflationary worries. The rule of thumb is whenever a Central bank RAISES rates GOLD and SILVER will tumble (at least temporarily) and when Central banks LOWER rates GOLD and SILVER will rally…. Gold traded a very choppy $20.30 range and Silver covered a 97 cent range…Both metals finished lower on the day… However, a late session rally brought Gold from the $1372.70 level back to close at $1384.90….Which may indicate some “bargain hunting buying”…Also keep in mind that during inflationary times gold and silver historically retain value better than most commodities… China raises rates and pushes the metals lower…. This also gives the citizens of China an opportunity to buy Gold and Silver at lower prices….
Noteworthy News This Week……..
Monday’s Gold and Silver session rallied as the European Union’s financial woes continue to put a drag on the Euro. Assets in Hungary weakened Monday as Moody’s Investors Services downgraded the country’s debt by two levels, taking it from Baa1 down to Baa3 this is just one level from “JUNK” status… This is certainly another hurdle for the already fragile region. The Gold and Silver markets rallied (Silver traded over $30.00 and Gold came within a few Dollars of all-time high’s) as i believe global investors looked at Gold as their currency of choice as a move to “safe haven” investments. The euro region has struggled all year to “RIGHT” their financial ship as one state after another has needed financial assistance from the financial ministers of the European union as well as the IMF (International Monetary Fund).
Tuesday (Globex) February Gold contract notched another all-time high trading $1432.50 ………….
Wednesday produced a Big down day for the gold and silver markets as both markets experience key technical reversals. One day after Gold made another all-time high and Silver made a new 30 year high the precious markets lost momentum and triggered a two day mammoth sell-off. Rumors of the U.S tax extension package not having enough votes to pass helped to extend yesterday’s negative settlement. Also the continued concern that The Peoples Bank of China will once again raise interest rates has traders on edge and eager to take profits when the opportunity presents itself…
It was reported that IMF boss Dominique Strauss-Kahn strongly criticized the Euro regions financial ministers for the way they’re dealing with the Euro union’s debt crisis and was quoted as saying “The Euro zone has to provide a comprehensive solution to this problem” and added “the piece mail approach, one country after another, is not a good one.”
Thursday…
Today Fitch cut Ireland’s credit rating from A+ to BBB-…this is just three levels above non-investment grade. there was a rumor early in the session that there was extreme opposition in Ireland to accept the bail-out package as is…. The Irish have imposed very stringent measures in order to receive the present bail-out package from the European Union and IMF (International Monetary Fund) jointly. The current measures imposed have not been well received….
France and Germany have joined forces in refusing to add to 4440 Billion Euro rescue fund….putting an added strain on already high tension atmosphere. European Union leaders are due to summit next week…..
On a brighter note U.S Jobless Claims were better than projections….
Data showed jobless Claims were 421,000 better than 425,000 expected…
MY SWING NUMBERS FEBRUARY GOLD….12/13
RESISTANCE # 2…………$1404.00
RESISTANCE # 1…………$1395.00
PIVOT……………………….$1384.00
SUPPORT # 1……………..$1374.00
SUPPORT # 2……………..$1364.00
MY SWING NUMBERS MARCH SILVER 12/13
RESISTANCE # 2…………$29.53
RESISTANCE # 1…………$29.06
PIVOT……………………….$28.56
SUPPORT # 1……………..$28.10
SUPPORT # 2……………..$27.59
Mike Daly / Gold Specialist
PFG BEST
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